Three Services Annual Fee Credit Cards Have That Are Often Missing In No Annual Fee CardsMay 8, 2010 - 1:58 am
The recent enactment of legislation, that protects credit card holders from excessive fees and rates, has credit card companies seeking new ways to earn revenue. One solution will be to go after high net worth customers willing to spend money for cards that will give them the extra perks that most annual fee credit cards do not provide. Three areas of perks that such cards provide are travel, shopping/concierge and entertainment. With little exception, these perks will be difficult to find with no annual fee credit cards.
Travel perks for annual fee credit cards may include double and triple miles on a particular airline, waived fees to check baggage, access to the ever exclusive airline lounges at airports and even a certain number of companion airline tickets offered per year. Other popular benefits enjoyed by business or frequent travelers are room upgrades and complimentary breakfast at five star hotels. Every traveler can benefit from this type of service.
Shopping/Concierge perks you will almost never see from no annual fee credit cards include discounts on merchandise, access to concierge services which can help book spa appointments, reserve tee times at exclusive golf clubs and even get your pet groomed. One particular card charging an annual fee will get you into the VIP tent at a professional car racing event. Another card with these benefits comes with an actual diamond embedded within the credit card.
The benefits of paying a fee for a credit card can also pay off when seeking quality entertainment. Access to VIP events and tickets to sold-out concerts are just some of the highly desired advantages that come with owning one of these cards. Some cardholders are entitled to the use of a limousine with a driver for the day, a private jet or even a chartered yacht trip.
These three categories of perks will greatly appeal to the frequent traveler or to any individual who feels a certain elevated status by flashing a particular credit card known only to be granted to credit worthy big spenders. While a basic credit card that boasts it will not charge an annual fee may get you airline miles and cash back rewards, the trend is for credit card companies to reduce these benefits or charge a fee for them. Credit card holders may be willing to spend a little more if they are taking advantage of the perks currently offered to them. Regardless, with the increased pressure on credit card companies to find additional sources of income in an environment where credit card penalties are being heavily scrutinized, offering travel, shopping/concierge and entertainment perks is a smart way to attract high income customers.